Importers' Responses to the Anti-dumping Duty of Steel in Indonesia

This research aims to delve into the impact of anti-dumping policies on steel imports volume in Indonesia. It employs ordinary least squares (OLS) method with a fixed-effects model using a sample of unbalanced data panel of imports from 48 countries, comprising those that impose anti-dumping duty (AD) on specific HS code steel (named countries) and those that are not subject to imported steel AD (non-named countries) in the period 2007–2015. As Indonesia is an object country that has different characteristics from other developed countries in earlier research, the object of this research confirms impact of trade diversion as trade as well as reduction as the policy impact of Indonesia’s AD of steel. The empirical research results find the existence of trade reduction in the volume of steel imports from the named countries but do not prove the existence of trade diversion of steel import volumes from non-named countries. Such results contrast to those occurring in previous studies in which the imposition of the anti-dumping tariffs in the United States, European Union, Japan, and other developed countries, in addition to impact trade reduction, causes trade diversion.